Canadian auto sales fall 2.2 per cent in January

Canadian new car sales in January saw a 2.2% decrease from this time last year, yet were higher than the five-year average.

PHOTO: Nam Y. Huh, Associated Press

By Nick Tragianis, National Post

Originally published: February 1, 2013

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Although the Conference Board of Canada says consumer confidence is on the rise, sales of new cars totaled 95,306, a decrease of 2.2% from this point last year.

The Association of International Automobile Manufacturers of Canada (AIAMC), which represents companies like BMW, Hyundai and Toyota, says sales of passenger cars fell to 39,099 units, or 5.2%. Light truck figures remained mostly unchanged at 56,297, although they dominated a larger share of the market – 59.1% compared to 57.8% last January.

In a press release, AIAMC president David Adams said despite the seemingly weak numbers, last month’s numbers were still stronger than the five year average of 88,652.

“It needs to be remembered that last January was very strong and having sales this January continue the trend of being stronger than the five year average bodes well moving into the year,” Mr. Adams wrote. “It is clearly a very competitive marketplace for all manufacturers.”

South of the border, sales were strong. Ford reported an increase of 22% across their entire lineup, thanks to the Fusion, Escape and Explorer posting record sales numbers compared to a year before. Chrysler had one of their best starts to the year, posting sales of 117,731 cars – their highest January numbers since 2008 – and GM sold 194,699 cars compared to this point last year.

In their press release, GM’s vice president of U.S. sales operations Kurt McNeil said the increases in sales reflect “a strong sense of optimism among our dealers” thanks to “entering the sweet spot of our product plan in a growing economy.”

Toyota posted sales gains of 26%, four points ahead of estimates. Honda and Nissan, on the other hand, fell short of expectations although still posted increases of 13% and 2% respectively.